Microsoft Cuts 4,800 Jobs As AI Spending Rises, More Changes Expected

New Delhi, July 7(APAC Media): Microsoft has announced another round of layoffs. The company will cut around 4,800 jobs, or about 2.1% of its global workforce, as it continues to invest heavily in artificial intelligence (AI) and reorganise its Xbox gaming business.

Most of the job cuts are expected to come from Microsoft’s Xbox division. Reports suggest around 3,200 Xbox-related roles could be affected. The move follows Microsoft’s multi-billion-dollar investment in gaming, including its acquisition of Activision Blizzard, as the company changes its strategy to focus more on selling games across different platforms instead of only on Xbox consoles.

As part of the restructuring, Compulsion Games and Double Fine Productions will become independent studios. Ninja Theory and Undead Labs will focus on developing their existing game franchises, while Arkane Studios has started discussions with its workers’ union in France about its future.

Microsoft said the layoffs are part of its plan to focus on long-term business priorities. Chief People Officer Amy Coleman said the affected roles are not being replaced by AI, but added that AI is changing the way employees work across the company.

The layoffs come just days after Microsoft launched Microsoft Frontier Company, a new AI business unit that will help large organisations build customised AI solutions. The company is spending billions of dollars on AI infrastructure as demand for AI services and cloud computing continues to grow.

Microsoft has already reduced its workforce several times this year. The latest job cuts show how major technology companies are cutting costs and shifting more resources towards AI while reshaping their businesses for future growth.